Gold production of 100,895 ounces in 2012 represented a 10 percent
increase over 2011. Fourth quarter production of 22,116 ounces of gold
was adversely impacted by power disruptions at Segovia. Gran Colombia
has taken steps to mitigate the power issues and gold production in
2013 has shown improvement over the fourth quarter and no further power
interruptions have been experienced in 2013.

Revenues of $168.2 million in 2012 represented growth of 22 percent
compared to 2011, primary resulting from production growth, an increase
in realized gold prices to an average of $1,664 per ounce for the year
and having a full year of operations in 2012 at the Marmato underground
mine.

Total cash costs averaged $1,317 per ounce of gold in 2012, up from
$1,254 per ounce in the prior year. Segovia's cash cost, averaging
$1,341 per ounce in 2012, reflected the impact on artisanal mining
costs of higher gold prices in 2012, the numerous challenges
encountered during a year of extensive activity to double the Maria
Dama plant's milling capacity, power disruptions in the fourth quarter
and temporary lower grades in the second half of the year.

Gross Margin of $18.2 million in 2012, improved by $6.7 million,
compared to $11.5 million last year.

General and administrative expenses (G&A) of $16.5 million in 2012, up
from $15.6 million in 2011 (although 2011 did not include Medoro
Resources' G&A prior to the June 2011 merger). In early 2013, the
company has taken steps to cut G&A spending by $150,000 per month, a
significant contributor in the expected reduction in G&A to a level of
$14.5 million in 2013.

Net loss attributed to shareholders of $36.2 million, or $0.09 per
share, in 2012 included $7.7 million in transaction costs related to
the gold-linked notes financing, $7.2 million loss on the
market-to-market of financial instruments, $4.1 million impairment of
assets, $3.8 million foreign exchange losses and $3.1 million of
acquisition costs.

Exploration highlights included the successful completion of exploration
campaigns at Segovia and Marmato that increased total measured,
indicated and inferred resources in early 2012 to 1.9 million ounces,
10.2 million ounces and 3.7 million ounces, respectively, and the
discovery of a new deep zone mineralization at Marmato. The company
commenced a 20,000 meters drilling campaign in October 2012 to upgrade
and expand its resources at Segovia. This program is expected to be
completed in the second quarter of 2013.

On October 30, 2012, the company closed a $100 million, senior secured
10 percent gold-linked notes financing to fund its Pampa Verde project
to reduce costs and increase production at its Segovia Operations.

Commenting on the company's 2012 results, Serafino Iacono, Executive
Co-Chairman of Gran Colombia commented, "In 2012, we undertook a major
upgrade and expansion of our existing processing plant at Segovia,
growing capacity from 500 to 1,300 tonnes per day. Despite many
challenges, we were able to increase the amount of ore produced at our
plant by 38 percent." Looking forward to 2013, Mr. Iacono added, "This
year our focus is on delivering a profitable and steady production rate
at Segovia to fund our near term cash needs while we deliver the Pampa
Verde project, which will be the foundation of our future low cost,
modern mining operations in Segovia. At Marmato our focus in the first
half of the year is on publishing a prefeasibility study on the
expansion of our current underground operations."

Financial and Operating Summary

A summary of the financial and operating results for the fourth quarter
and full year of 2012 is as follows:

Fourth Quarter

Year

2012

2011

2012

2011

Operating data:

Gold produced (ounces)

22,116

26,979

100,895

81,480(3)

Gold sold (ounces)

21,198

29,185

98,439

83,809

Average realized gold price ($/oz sold)

$

1,728

$

1,687

$

1,664

$

1,596

Total cash costs ($/oz sold) (1)

1,534

1,113

1,317

1,254

Financial data:
($000's, except per share amounts)

Total revenues

$

37,758

$

50,425

$

168,243

$

137,713

Gross margin (2)

472

13,157

18,201

11,453

Net (loss) income attributable to shareholders

(22,852)

2,402

(36,172)

(37,047)

Basic and diluted loss per share

(0.06)

0.01

(0.09)

(0.12)

Cash and cash equivalents

1,298

20,334

1,298

20,334

Cash in trust, current and non-current (4)

84,937

2,356

84,937

2,356

Total debt, including current portion

188,449

73,454

188,449

73,454

(1)

"Total cash costs" are presented on a per ounce sold basis and represent
consolidated averages for the company from both the Segovia Operations
and Marmato Underground mine. See "Additional Financial Measures in
the MD&A".

(2)

"Gross margin" represents total revenues, net of operating costs,
production taxes and depreciation, depletion and amortization.

(3)

91,410 ounces including production from Marmato Underground prior to the
June 2011 merger with Medoro Resources Inc.

(4)

2012 includes $83.7 million set aside to pay capital costs of the
Segovia expansion and interest on the Gold Notes until October 2014.

Segovia Operations Update

At the Segovia Operations, the company executed a number of initiatives
in 2012 to upgrade the Maria Dama plant, successfully increasing the
plant's capacity to about 1,300 tpd at the present time. These
initiatives included the installation of a new crusher-jig-sifter
system at the beginning of the year, a new 1,500 tpd ball mill that
came on-line in mid-May and six (three dual) new flotation cells that
were completed in the month of December. Six new cyanidation tanks are
also now in operation. In September 2012, the company reached its
objective of processing 1,000 tpd, double the historical processing
rate at Maria Dama. Fourth quarter production at Segovia was primarily
impacted by unexpected downtime caused by external power disruptions on
almost a daily basis over a 25-day period, beginning in mid-November,
that reduced throughput by about 40 percent during that period. The
power supply situation in Segovia has since returned to normal and
there have been no recurrences since that time. The company has taken
steps to resolve the issue, including establishing suitable notice
periods with the local power supplier and signing a contract with
Colombia-based, Proelectrica & CIA S.C.A. ESP to provide backup diesel
generating plants for the company's current Segovia Operations, which
the company expects to be operational in the first half of 2013. During
the first two months of 2013, an average of 858 tpd was processed at
Maria Dama. In March 2013, the plant has been steadily processing ore
at the rate of 1,000 tpd. Some minor capital investment (less than $1
million) is being undertaken in 2013 to improve mill uptime and to
complete the Maria Dama plant expansion to a maximum capacity of 1,500
tpd.

Historically, grades at Segovia, one of the top ten producing mines by
grade in the world(1), have averaged in the range of 12 to 14 grams per tonne (g/t). However,
in the third and fourth quarters of 2012, grades averaged approximately
9 g/t due to the temporary depletion of higher grade zones in the
levels currently being mined at Providencia and El Silencio and, to a
lesser extent, the processing of some lower grade stockpiles. Through
mid-March 2013, head grades continue to average approximately 9 g/t as
mine development activities progress, it is expected that head grades
will begin to show some improvement in the second quarter, increasing
to an average of about 10 g/t in the second half of 2013.

At Marmato Underground, operations remained steady in 2012, with 732 tpd
milled at an average head grade of 2.9 g/t and a mill recovery of
88.3%, resulting in total gold production of 21,717 ounces for the
year. Gold production is expected to be 20,000 ounces in 2013 due to a
crusher upgrade to be completed in the second quarter of 2013.

The company's near-term focus at the Marmato Project is to complete and
publish the prefeasibility study for the upgrade of its current
underground operation, which the company expects to complete by June
2013.

Outlook

As previously disclosed in the March 1, 2013 press release, the company
expects full year 2013 production of 110,000 ounces of gold. The
company expects its all-in sustaining cash cost (including cash costs
(on a by-product credit basis), sustaining capital, corporate G&A
expenses and exploration expense) to be approximately $1,380 per ounce
of gold. This comprises cash cost of approximately $1,170 per ounce,
G&A of $130 per ounce, sustaining capital of $40 per ounce and Marmato
Project ongoing costs of $40 per ounce. Sustaining capital
expenditures for 2013 will total approximately $4.5 million and an
additional $4.5 million is expected to be spent on social and other
ongoing programs at the Marmato project site. Capital expenditures and
exploration in support of the Pampa Verde Project will be funded
separately from the proceeds generated by the Gold Notes and are not
included in all-in sustaining cash cost.

Webcast

As a reminder, the company will host a conference call and webcast on
Wednesday, March 27th at 9:30 a.m. Eastern Time (8:30 a.m.Bogota time) to discuss the
results and provide an operational update.

Gran Colombia is a Canadian-based gold and silver exploration,
development and production company with its primary focus in Colombia.
Gran Colombia is currently the largest underground gold and silver
producer in Colombia with several underground mines in operation at its
Segovia and Marmato Operations. In addition, Gran Colombia is advancing
a project to develop a large-scale, gold and silver mine at its Marmato
operations.

This news release contains "forward-looking information", which may
include, but is not limited to, statements with respect to the future
financial or operating performance of the Company and its projects and,
specifically, statements concerning anticipated growth in annual gold
production and reduction of cash costs. Often, but not always,
forward-looking statements can be identified by the use of words such
as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or "believes" or
variations (including negative variations) of such words and phrases,
or state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Gran Colombia to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Factors that could cause
actual results to differ materially from those anticipated in these
forward-looking statements are described under the caption "Risk
Factors" in the Company's Annual Information Form dated as of March 28,
2012 which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of
this press release and Gran Colombia disclaims, other than as required
by law, any obligation to update any forward-looking statements whether
as a result of new information, results, future events, circumstances,
or if management's estimates or opinions should change, or otherwise.
There can be no assurance that forward-looking statements will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, the
reader is cautioned not to place undue reliance on forward-looking
statements.